Ugandan firms to take part in SGR project

South Sudan president Salva Kiir (3rd left), Rwanda’s Paul Kagame (2nd right) and President Museveni (right) and other officials launch the SGR project in Kampala. FILE Photo

What you need to know:

Taking part. Ugandans can supply construction materials, among other things

Kampala.

The minister of Works and Transport Monica Azuba has signed the Standard Gauge Railway (SGR) local content strategy paving way for its implementation.

She asked Ugandans and contractors to support the implementation of the strategy in order to ensure that maximum benefits from the project trickle down to the last citizen.

The SGR local content refers to the added value brought to Uganda through the competitive and gainful participation of citizens and the Ugandan private sector in this multi-billion infrastructure project.

Ms Azuba met a group of local steel and cement manufacturers last week to discuss their involvement in the project. This was one of a series of meetings that have been held with the larger manufacturers in the country.

Ms Azuba asked the manufacturers to prepare in time to supply “this big project as it will help in empowering local industries and create more opportunities for Ugandans through job creation.”
The local content strategy provides that up to 40 per cent of supplies for works come from local entities while out of every 10 employees, nine should be Ugandan and foreign skills should only be sourced if such skills cannot be found locally.

Roofings Group chairman Sikandar Lalani, who attended the manufacturers’ meeting, said they are ready to supply steel and cement in the right quantities and quality. Uganda has 12 steel manufacturing plants, key ones being Roofings Limited and Steel and Tube Industries Limited while leading cement manufacturers are Tororo Cement and Hima Cement.

There are several possible areas of participation for the local private sector including supply of major construction materials including cement, timber, steel and stone products.
The others are security services, petroleum products, consultancy, legal, vehicle hire, legal and labour, among others.

A local content unit will be set up within the SGR project office to oversee its implementation. Consequently, there will be need to monitor the supply chain of imported raw materials and inflow of foreign workers as well as strong supervision and information flow within the project.

The SGR project coordinator Eng. Kasingye Kyamugambi, said the entire strategy will be implemented in consultation with Chinese contractors.

Local content will be spread throughout the project spread meaning local suppliers of earth, gravel, aggregates spread across the route length will benefit if they meet the standards and specifications.

Benefits
It is estimated that by 2040, the SGR benefits that will accrue to the country will be about $118.4 billion (Shs424.5 trillion).
Currently, the SGR project is pushing towards accomplishing land acquisition to pave way for the commencement of construction this year.

In total, the Eastern Route covering a distance of 273 km will pass through the 11 districts of Tororo, Butaleja, Namutumba, Iganga, Luuka, Mayuge, Jinja, Mukono, Buikwe, Wakiso and Kampala. The right of way or marking of the railway corridor has been completed upto Kampala District.

So far, Tororo, Namutumba, Butaleja, Luuka, Iganga and Mayuge have largely been compensated. Valuation reports for Mukono and Jinja have been submitted to the office of the chief government valuer awaiting approval and payment.

The requirements
Participation. One of the key requirements of the strategy is to ensure that Ugandans fully participate and benefit in the key infrastructure projects being undertaken in the country. The strategy was developed by the SGR project office in consultation with stakeholders.